The City watchdog has begun criminal action against two brothers accused of insider dealing and fraud whilst employed at Goldman Sachs and magic circle law firm Clifford Chance.
In a statement today (February 16) the Financial Conduct Authority said Mohammed Zina and Suhail Zina had appeared at Westminster Magistrates’ Court, where the case was sent to Southwark Crown Court for a plea and trial preparation hearing next month.
The regulator alleges the pair committed six offences of insider dealing and three offences of fraud by false representation between July 2016 and December 2017.
At the time Mohammed Zina was employed as an analyst by Goldman Sachs International and Suhail Zina was a solicitor at law firm Clifford Chance.
The FCA said the brothers had made a profit of about £142,000 from the alleged insider dealing.
The fraud charges relate to three personal loans totalling £95,000 from Tesco Bank, which were stated to be for funding home improvements.
But instead the loans funded the alleged insider dealing, which the FCA claimed involved stocks including ARM Holdings, Alternative Networks, Punch Taverns, Shawbrook, HSN and Snyder’s Lance.
The punishment for fraud is a fine and up to ten years in prison and if found guilty of insider dealing the pair could face a fine and a prison term of up to seven years.